A company can consider closing down for many reasons. Some of the reasons can be due to loss and unable to carry out business operations, market fluctuation and direct competition. There might also be instances where the shareholders may look into investing in other business ventures which means closing down the current company. Closing a Thai company can be a lengthy and cumbersome process. The process to close a company must be done efficiently and under lawful procedures.
If the shareholders decide to close the company, the primary step is to finalize and audit the company’s accounts to have a final look at the assets and liabilities. Any ongoing legal and accounting matters must be cleared off before the closing can be started. A liquidator must be appointed to wind up the company’s affairs and register it with the Ministry of Commerce. Following Section 1247 through 1273 of the Civil and Commercial Code of Thailand, the process for voluntary liquidation and dissolution of a private limited company is as described below: